New York’s GUARD Act seeks to restrict mobile wagering bonuses to curb problem gambling
New York lawmakers introduced the GUARD Act (A09542) to prohibit many common mobile sports wagering incentives.
New York Assemblymembers introduced Assembly Bill 9542, known as the Gamblers Unfairly Abused by Reward Dynamics (GUARD) Act, on January 14, 2026.
The proposal aims to amend New York’s racing, pari-mutuel wagering, and breeding law to curb the use of aggressive financial incentives by mobile sports wagering operators, with the stated goal of reducing excessive or harmful gambling behavior.
Under the bill’s language, a wide range of commonly marketed betting promotions would be restricted statewide if the legislation advances.
The measure was referred to the Assembly Racing and Wagering Committee upon introduction and remains there as of mid-January 2026.
Key Provisions: What the GUARD Act Would Ban
The GUARD Act specifically prohibits mobile sports betting operators licensed in New York from offering the following types of monetary incentives:
- Bonus Bets and Free Bet Offers: Credits provided to entice play without corresponding risk.
- Money-Back or Insurance-Style Offers: Refunds or reimbursements tied to specific wager outcomes.
- Special Odds and Enhanced Pricing: Promotional odds designed to attract new or casual bettors.
- Marketing-Driven Incentives Connected to Certain Actions: Including offers tied to:
- Account creation (bonuses for opening a new account)
- Referrals (bonuses for referring another person to open an account, excluding payments to internal marketing staff or contractors)
- Initial engagement (bonuses tied to a first bet)
- Reactivation (offers tied to re-opening or reactivating an expired account)
- Lapsed activity (betting incentives after 90 days of inactivity)
- Self-limit modifications (bonus triggers when a bettor changes or increases self-imposed limits)
In essence, the bill would prohibit nearly all of the standard promotional tools digital sportsbooks use to attract and retain customers, a significant departure from current industry practice.
Policy Motivations Behind the Proposal
Supporters of the GUARD Act argue that many wagering incentives, especially those tied to deposits, reactivation, or referral bonuses, can encourage impulsive or problem gambling behavior, particularly among vulnerable populations.
Assemblymember Stacey Pheffer Amato, the bill’s primary sponsor, has framed the proposal as a public health-oriented reform designed to balance consumer safety with the interests of a regulated wagering market.
Proponents say that restricting aggressive bonus offers will reduce incentives for bettors to chase losses or escalate play beyond their means, while still allowing regulated wagering to function with core services intact.
Companion Bill and Legislative Status
The GUARD Act has a companion measure in the New York State Senate, Senate Bill S08627, introduced earlier in January 2026 with nearly identical language. That bill was filed on January 7, 2026, and is expected to move through the Senate Racing, Gaming, and Wagering Committee.
Both chambers are expected to hold hearings on the proposals during the early weeks of the 2026 session, giving stakeholders, including regulators, consumer advocates, and wagering operators, the opportunity to provide testimony or propose amendments.
As of January 14, 2026:
- Assembly Status: Referred to the Assembly Racing and Wagering Committee
- Sponsor: Assemblymember Stacey Pheffer Amato
- Senate Companion: S08627 introduced January 7, 2026
How the Bill Differs from Current Law
Under current New York law, the New York State Gaming Commission licenses and regulates mobile sports betting operators, and there is no statutory prohibition on offering bonus bets, sign-up incentives, referral bonuses, or reactivation offers.
These financial incentives are common industry practice and widely used to attract new customers and retain existing ones.
If passed, the GUARD Act would place New York among a small number of states with explicit legal limits on these types of promotional wagering incentives, changing how sportsbooks market and operate in the state.
Potential Impact and Debate
The proposal has the potential to reshape the interface between regulated sportsbooks and consumers, with supporters touting potential reductions in problematic gambling behavior and critics warning about unintended consequences:
Supporters’ arguments include:
- Reducing inducements that may lead to impulse bets or loss chasing
- Encouraging more responsible gambling habits
- Aligning wagering policy with broader public health goals
Critics’ concerns include:
- Less competitive markets compared with states without such restrictions
- Lost promotional flexibility for operators to attract customers
- Possible shifts of betting activity to unregulated platforms
The balance between consumer protection and market competitiveness is likely to be a central theme during committee hearings and floor debates later in the session.
A Major Shift in Sports Betting Policy?
The GUARD Act (A09542) represents one of the most ambitious efforts yet in New York to regulate the marketing practices of mobile sports wagering operators, focusing squarely on incentive structures that have become standard in U.S. wagering markets.
As it works its way through committees in both the Assembly and Senate during the 2026 legislative session, the bill is likely to spark vigorous discussion among legislators, industry leaders, consumer advocates and responsible-gaming experts.
Whether New York ultimately limits sportsbook incentives could set a policy precedent for other states grappling with how best to balance economic opportunity, consumer autonomy and problem-gambling mitigation in an era of widespread mobile wagering.
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